ARV & Assessed Value

[Steven Azrilevich]

Does the difference between ARV and Assessed Value in any way approximate the amount of repairs that a property will require?

[Edward B.]

NO. Assessed values are rarely a good estimate of what a property is actually worth. County assessors bulk appraise the properties that they are responsible for at varying intervals. Therefore, their assessment could be dated and may be based on properties that are not truly comparable. Additionally, some assessments are only a percentage of the actual value of the property. This is done for numerous reason, one of which is to avoid a lot of challenges from property owners. So the assessed value may have very little bearing on what the ARV of a given property is and it certainly does not take into consideration any repairs that may be required.